With a desire to boost cooperation between Vietnam and the Czech Republic, the Ministry of Industry and Trade of the Czech Republic sent a delegation consisting of the Technology Agency of the Czech Republic (TA CR) and the Investment and Business Development Agency of Czech Republic (CzechInvest), led by Mr Pavel Komárek of TA CR, to pay a working visit to Vietnam from August 12 to 16, 2013.
During the visit, the delegation had a working meeting with Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), to discuss investment promotion and technology transfer programmes and contents between companies of the two countries.
TA CR and CzechInvest, set up by the Ministry of Industry and Trade of the Czech Republic in 1992, are responsible for carrying out development projects and programmes to draw foreign investment capital and strengthen the development of Czech companies.
CzechInvest contributes to attracting foreign investment and developing domestic companies through its services and development programmes. CzechInvest also acts as an intermediary between the EU and small and medium-sized enterprises in implementing structural funds in the Czech Republic.
CzechInvest desires to build international trade relationships for Czech SMEs with other countries. Vietnam is one of prioritised countries. CzechInvest has clear orientations to strengthen relationships between Vietnamese and Czech Republic organisations, companies and research institutes, especially fields with high knowledge contents.
TA CR is the Czech government agency responsible for supporting research, experimental development and innovation. The agency primarily prepares and realises its own programmes of applied research, experimental development and innovation; evaluates and selects programme proposals; administers functional financial support of applied research from the national budget; controls fulfilment of project contracts; evaluates fulfilment of objectives of programmes and controls their results; counsels (legal, financial and intellectual property rights) for programmes and projects of applied research, experimental development and innovation,
Vietnam and the Czech Republic signed the economic cooperation agreement (September 13, 2005) after terminating the bilateral trade agreement in May 2004 when the Czech Republic joined the EU. The Czech Republic established a trade promotion agency, Czechtrade, in Ho Chi Minh City.
Despite remarkable increases year after year, the two-way trade remains modest. The bilateral export turnover reached climbed from US$92 million in 2006 to more than US$156 million in 2008, over US$205 million in 2010, and US$242 million in 2012. Vietnam’s key exports to the Czech Republic are footwear, apparel, equipment, tools, spare parts, chemicals and seafood.
In investment cooperation, the Czech Republic had 27 investment projects in Vietnam with a total registered capital of over US$65.5 million as of the end of 2012, mainly focusing on crystal glass, beer, electrical equipment, processing, kaolin and construction materials. Investment cooperation fields of high prospects are energy, transportation (locomotive, wagon, bus, tramcars for city service), and mechanics (machinery, equipment, engine, agricultural machinery, watering equipment) - strengths of Czech Republic. The largest project of Czech Republic in Vietnam is the Quang Binh - Bohemia kaolin processing plant in Quang Binh province, costing US$35.1 million and going into official operation from October 2010.
For its part, Vietnam had four investment projects valued at US$5.3 million in the Czech Republic, focusing on real estate and construction materials.
In other fields, the Czech Republic regularly participates in international donor meetings for Vietnam. It was the first Eastern European country to continue to grant ODA aid to Vietnam, totalling about US$18 million to date. Notable projects include the training and employment project for Vietnamese people returning from Czech Republic, the orthopaedic centre for disabled children in Thai Nguyen province, and Viet Tiep Hospital in Hai Phong City. Czech has funded many health and environment projects in Vietnam.
Labour cooperation has been restored after many years of interruption. Unlike previous State-led cooperation, the current relationship is built by companies of the two countries. Presently, some 3,295 Vietnamese workers are working in factories in the Czech Republic, mainly in processing, assembly, mechanical industries and restaurant services. However, Vietnam's manpower supply to Eastern European countries like the Czech Republic is on the decline in recent years as the result of financial crisis.
Quynh Anh
Vietnamese
